A foreign investor plans to contribute VND 3 billion in charter capital to establish a company in Vietnam. With this capital contribution, does the investor fall under the category eligible for a work permit exemption under the latest regulations? In addition, for convenience in managing the enterprise and staying long-term in Vietnam, should the investor apply for an Investment Visa (DT Visa) or for a Temporary Residence Card?
Answer:
- Conditions for Confirmation of Exemption from Work Permit Requirement
According to Clause 2, Article 7 of Decree No. 219/2025/ND-CP: “Foreign workers that owners or capital contributors with a capital contribution value of VND 3 billion or more in a limited liability company”.
Therefore, as a foreign investor contributing VND 3 billion in charter capital, you are not required to obtain a Work Permit.
In addition, within 60 days, but not later than 10 days prior to the date the foreign worker is expected to commence work, the employer must submit a dossier requesting the issuance of a certificate confirming that the foreign worker is not subject to the work permit requirement. This application is submitted to the Public Administration Service Center in the locality where the foreign worker is expected to work.
However, foreign workers who are company owners or capital-contributing members with a capital contribution of VND 3 billion or more in a limited liability company are exempt from the procedure of applying for such confirmation. Instead, the employer must notify the competent authority (the authority in charge of issuing confirmation of work-permit exemption) in the locality where the foreign worker will work at least 3 working days prior to the date the foreign worker is expected to start working in Vietnam.
The notification must include key information such as: full name, date of birth, nationality, passport number, name of the foreign employer, workplace location, and duration of work.
Legal Basis: Clause 2, Article 7; Clauses 1 and 4, Article 9 of Decree No. 219/2025/ND-CP
- Should You Choose a Temporary Residence Card or an Investment Visa?
According to Clause 7a, added by Point d, Clause 4, Article 1 of the amended 2019 Law on Entry, Exit, Transit, and Residence of Foreigners in Vietnam, the DT3 Investment Visa has a maximum validity of up to 3 years and only permits entry and stay for the duration indicated on the visa. Once the visa expires, the investor must carry out extension or renewal procedures and must continue to comply with all immigration requirements.
Furthermore, under Clause 2, Article 36 of the amended 2019 Law on Entry, Exit, Transit, and Residence of Foreigners in Vietnam—regarding cases eligible for a Temporary Residence Card (TRC)—foreigners issued a visa with the DT symbol are eligible to be considered for a TRC bearing the corresponding symbol. Therefore, you must first be issued a DT visa before being eligible to apply for a TRC in Vietnam.
Although the DT3 Investment Visa allows investors to enter Vietnam with a maximum validity of 3 years, a visa essentially provides short- to medium-term stay. Upon expiration, the investor must extend or reapply for the visa, which increases administrative time and costs and may disrupt business management plans if the extension is not processed in time.
In contrast, a Temporary Residence Card for investors (coded DT1, DT2, or DT3 depending on the capital contribution) offers a far more stable residency option. Once issued a TRC, an investor may reside in Vietnam throughout the card’s validity period without having to periodically exit and re-enter the country, and may freely enter and exit Vietnam multiple times without needing a visa. This is a major advantage for investors who need to directly manage business operations in Vietnam.
Therefore, considering the need for stable residency and overall convenience in both work and daily life, after obtaining a DT3 visa, foreign investors are strongly advised to apply for a Temporary Residence Card with the corresponding designation. This ensures their rights and reduces administrative procedures during their time conducting business in Vietnam.
Consultation: Investment Law Services
